Correlation Between Mitsubishi UFJ and Global Crossing
Can any of the company-specific risk be diversified away by investing in both Mitsubishi UFJ and Global Crossing at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mitsubishi UFJ and Global Crossing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsubishi UFJ Financial and Global Crossing Airlines, you can compare the effects of market volatilities on Mitsubishi UFJ and Global Crossing and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mitsubishi UFJ with a short position of Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi UFJ and Global Crossing.
Diversification Opportunities for Mitsubishi UFJ and Global Crossing
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitsubishi and Global is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi UFJ Financial and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines and Mitsubishi UFJ is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mitsubishi UFJ Financial are associated (or correlated) with Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Mitsubishi UFJ i.e., Mitsubishi UFJ and Global Crossing go up and down completely randomly.
Pair Corralation between Mitsubishi UFJ and Global Crossing
Assuming the 90 days horizon Mitsubishi UFJ Financial is expected to generate 0.69 times more return on investment than Global Crossing. However, Mitsubishi UFJ Financial is 1.45 times less risky than Global Crossing. It trades about 0.06 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about -0.01 per unit of risk. If you would invest 660.00 in Mitsubishi UFJ Financial on November 2, 2024 and sell it today you would earn a total of 700.00 from holding Mitsubishi UFJ Financial or generate 106.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.13% |
| Values | Daily Returns |
Mitsubishi UFJ Financial vs. Global Crossing Airlines
Performance |
| Timeline |
| Mitsubishi UFJ Financial |
| Global Crossing Airlines |
Mitsubishi UFJ and Global Crossing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi UFJ and Global Crossing
The main advantage of trading using opposite Mitsubishi UFJ and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi UFJ position performs unexpectedly, Global Crossing can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Global Crossing will offset losses from the drop in Global Crossing's long position.| Mitsubishi UFJ vs. Banco Bilbao Vizcaya | Mitsubishi UFJ vs. ABN AMRO Bank | Mitsubishi UFJ vs. ING Groep NV | Mitsubishi UFJ vs. Banco de Sabadell |
| Global Crossing vs. Finnair Oyj | Global Crossing vs. easyJet plc | Global Crossing vs. Norse Atlantic ASA | Global Crossing vs. Air New Zealand |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |